Q1. Non-rationality and irrationality are the same thing.
a. True
b. False
Q2. When a financial trader takes great risk in selecting a
stock for which he will earn a large commission with no chance of being held
accountable for the decision, this offers an example of:
a. The
principal-agent problem
b. Criminal
behavior
c. Moral hazard
d. Illogical
thinking
Q3. When facing conditions of uncertainty in decision
making, you have more information available to you than when facing conditions
of risk?
a. True
b. False
Q4. When two or more people come up with a decision based on
attempts to accommodate their completely different value systems, the resulting
decision can be deemed:
a. A good one
b. A bad one
c. Irrational
d. Non-rational
Q5. What lies at the heart of effective real world decision making?
a. Good intentions
b. Plentiful
amounts of facts
c. Prioritization
d. Good
mathematical models
Q6. Multi-attribute decision making entails
a. Having more
than two people involved in the decision process
b. Developing a
sense of what the average decision maker would do under multiple circumstances
c. Balancing two
or more competing decisions to determine optimal outcomes
d. Prioritizing
decisions based on different factors
Q7. When the light turns green, traffic stops, and you
automatically begin crossing the street, this reflects:
a. Irrational
decision making
b. Non-conscious
decision making
c. Weak decision
making
d. A pre-decision
process
Q8. While group decision making needs to accommodate more
players than individual decision making, fundamentally the decision making
basics are the same in both cases.
a. True
b. False
Q9. If a majority of decision makers vote in favor of a
decision, this indicates that the decision has strong support and will be
implemented effectively.
a. True
b. False
Q10. Which of the following is not a feature of ?buy in? by
decision makers when making decisions?
a. All the people
making the decision agree this is the best decision
b. A majority of
people making the decision agree this is the best decision
c. While some
players do not actively agree with a decision, they will not oppose it
d. Some people who
vote for a decision work against its implementation during the decision
implementation process
Q11. Which of the following is not one of the five
categories of players highlighted in the social space of a decision?
a. Decision
implementer
b. The Community
c. Program funders
d. Stakeholders
Q12. Which of the following statements is not true in
general?
a. Decision makers
are comprised of multiple players holding different perspectives
b. Working outside
the formal decision making process, stakeholders will try to influence
decisions in order to achieve their desires
c. When making
decisions, decision makers must accommodate the perspective of the community
that will be affected by the decision
d. Decision makers
and decision implementers generally view decisions from the same perspective
Q13. A community faces an economic calamity when its Number
One employer shuts down its operations ? Which category of decision space ?player?
does this scenario reflect?
a. Decision maker
b. Decision
implementer
c. External forces
d. Stakeholder
Q14. A significant cause of decision failures is tied to the
fact that decision implementers can misinterpret the intent and guidance
offered to them by decision makers.
a. True
b. False
Q15. Which of the following disciplines approaches decision
making from a quantitative perspective?
a. Decision
science
b. Public policy
c. Social
psychology
d. Neuroscience
Q16. The neuroscience perspective in decision making holds
that:
a. Healthy brains
consistently make the best decisions
b. The decisions
we make are heavily colored by how our brains function
c. Artificial
intelligence leads to decisions that are superior to decisions made by humans
d. That the best
decisions exist independently of human perception of what is a good decision
Q17. Welfare economics is principally concerned with
providing poor people with food and shelter.
a. True
b. False
Q18. Which of the following findings is an important
contribution of social psychology to decision making theory and practice?
a. The section of
the brain that is most closely associated with decision making is the
prefrontal cortex
b. Decision making
is strongly affected by personality
c. In making
decisions, people are primarily influenced by perceived financial rewards
d. When
individuals make decisions, they are heavily influenced by peer pressure
Q19. A key premise of the behavioral economics perspective
on decision making is that:
a. When making
decisions, people optimize the returns they achieve
b. People seldom
approach decision making rationally
c. Decision making
is most effective when it is built on quantitative models
d. Most decision
making boils down to making supply vs. demand choices
Q20. A concentration on how small and large groups make
decisions, focusing on the interactions of the players, is characteristic of
which discipline?
a. Decision
science
b. Psychology
c. Social
psychology
d. Neuroscience
Q21. What is a central characteristic of the homo economicus
(“economic man”) assumption of decision making in economics?
a. In making
decisions, people should take into account the costs of services they receive
b. In making
decisions, people should take into account the revenue they anticipate
receiving
c. Of all the
factors that go into decision making, economic factors are the most significant
d. When making
decisions, people assume a rational perspective
Q22. To a large extent, determining what a group perceives
to be a good decision entails reconciling their often opposing perspectives.
a. True
b. False
Q23. Making decisions based on majority rule yields
predictably good results.
a. True
b. False
Q24. Which of the following statements is difficult to
support?
a. Good decisions
are built on solid and complete information
b. When dealing with
multiple decision makers, it is important to understand the perspectives of
each player
c. The stronger
the consensus among decision makers, the stronger the decision
d. Autocratic
decision making consistently leads to bad results
Q25. When a decision is made based on the largest number of
?votes? cast, but where 50% support is not achieved, this is called:
a. 100% consensus
decision making
b. Majority rule
decision making
c. Plurality
decision making
d. Non-rational
decision making
Q26. The principal characteristic of consultative decision
makers is that:
a. While they
collect input from other players, they ultimately make the final decision
b. They promote
decisions that reflect the views of all the players involved in the decision
making process
c. Their principal
goal is to achieve full consensus among the players on what decision to make
d. They recognize
that insufficient information exists to make an optimal decision, so they
promote suboptimal, “good enough” decisions
Q27. Self-directed work teams are often portrayed as
exemplars of an excellent approach to decision making at the grass roots level.
Which of the following is not an attribute of self-directed work units?
a. They promote
group think
b. They lead to
slow decision making as substantial time is spent achieving a consensus
c. They capture
multiple perspectives that should be examined when making decisions
d. They
consistently generate the best decisions because they entail empowering the
decision makers
Q28. Wikipedia demonstrates the effectiveness of distributed
group decision making in certain circumstances.
a. True
b. False
Q29. What did the strawberry jam study (module 5 slides)
conclude about analyzing a problem before making a decision?
a. You can over
analyze the problem, leading to weaker decisions
b. You can under
analyze the problem, leading to weaker decisions
c. The amount of
effort you put into analyzing problems is not related to the strength of your
decision
d. The
appropriateness of your analysis of problems needs to be determined in the
context of the decision you are making
Q30. Visual illusion demonstrate that objective facts are
not so objective ? what people perceive undergoes an interpretive process by
the brain
a. True
b. False
Q31. What psychological sub-discipline examines how thinking
affects decision making?
a. Cognitive psychology
b. Perceptual
psychology
c. Personality
d. Social
psychology
Q32. It is physically impossible for the brain to process
all the information presented to it. Consequently, the brain doesn’t attempt to
handle all the detail but fills in the blanks through:
a. Data
aggregation
b. Regression
analysis
c. Predictive
coding
d. Random sampling
Q33. Dijksterhuis’s experiment that had two groups of
students look at the traits of cars under different conditions (4 traits for
the first group, 12 for the second) suggests that:
a. With simple
problems, reliance on unconscious processes leads to better decisions
b. With simple
problems, decision makers use a flip-the-coin approach to decision making
c. With more
complex problems, decision makers do better when they leave some time to let
the unconscious mind work on the problem
d. With more
complex problems, you are better off making quick decisions than sleeping on
them
Q34. In order to make sense of the millions of bits of
information the brain receives each second, it:
a. Interprets data
by relying on templates based on past experience
b. Goes into turbo
charge mode
c. Increases the
number of neurons needed for processing purposes
d. It occasionally
goes into a suspend mode in order to catch up with unprocessed data
Q35. Systems 1 thinking is most appropriate when:
a. You don’t
understand a problem
b. Making group
decisions
c. When you don’t
require deep thought to make a decision
d. When you
require careful analysis to make a decision
Q36. The function of myelin (brain white matter) is:
a. To increase the
information storage capacity of the brain
b. To provide
feedback in response to neuronal pulses
c. To help the
brain to maintain its health by maintaining a proper chemical environment
d. To increase the
information transmission capabilities of neurons by a factor of 100
Q37. A high benefit/cost ratio is generally considered to be
attractive. Following is a list describing circumstances where decisions makers
might not want to support the project. Which item does not belong on the list?
a. Because the
ratio “hides” the size of the benefits and costs, the project may be
too small to warrant support
b. Other projects
exist with more favorable benefit/cost ratios
c. The fact that
benefits and costs are both estimates will yield unreliable results
d. The benefits
derived from the project may arrive too far in the future to be attractive
Q38. Which statement is most true?
a. Costs are
easier to assess than benefits
b. Benefits are
easier to assess than costs
c. Unless benefits
can be monetized, they have little value
d. Costs must be
monetized
Q39. To provide meaningful results, Benefit/Cost analysis
requires the employment of monetary data.
a. True
b. False
Q40. Compound interest and present value basically measure
the same thing from two different perspectives of time.
a. True
b. False
Q41. IRR measures:
a. The level of
profit of an investment
b. The level of
revenue of an investment
c. Return on
investment
d. The payback
period of an investment
Q42. An IRR of 23.4% tells us:
a. For the time
period being examined, we earn 23.4 cents for every dollar invested
b. For the time
period being examined, a $100 investment generates a profit of $234
c. Our profit is
23.4%
d. Payback on our
investment occurs 23.4% of the way into the project
Q43. For a decision making team to decide to support a
project:
a. NPV must be
lower than zero
b. NPV must be
greater than zero
c. Inflation must
be low
d. The prevailing
interest rate must be lower than 5%
Q44. Which of the following is not a factor that needs to be
taken into account when carrying out a benefit-cost analysis?
a. Determining the
lag between benefits and costs
b. Handling the
aggregation problem
c. Dealing with
the trade-offs of benefits vs. costs
d. Rewarding team
members for efficient completion of the analysis
Q45. When using benefit/cost ratios created from monetized
estimates of benefits and costs:
a. Considerations
of estimation risk are minimized
b. The resulting
ratios are unit-less numbers
c. There is a
tendency to overstate benefits in relation to costs
d. There is a
tendency to overstate costs in relation to benefits
Q46. The Health Bureau of a state government decides to
provide more funding to resolve diseases affecting children than diseases
affecting the elderly. This approach illustrates which public/social decision
making criterion?
a. Caldor Hicks
criterion
b. Pareto
criterion
c. Social welfare
criterion
d. Ceteris paribus
criterion
Q47. From the perspective of SWOT analysis, which of the
following is an opportunity?
a. The first-rate
talent of our employees
b. Our possession
of strong patents for important technologies
c. Our launching
of a new marketing campaign
d. An emerging market for our goods
Q48. From the perspective of SWOT analysis, which of the
following is a strength?
a. The first-rate
talent among our employees
b. A booming
economy
c. An emerging
market for our goods
d. New tax
legislation which reduces our tax exposure
Q49. From the perspective of SWOT analysis, which of the
following is a weakness?
a. The onset of a
recession
b. The mediocre
leadership capabilities of our CEO
c. The changing
market for our product line
d. Consumer
excitement over products launched by our competitors
Q50. From the perspective of SWOT analysis, which of the
following is a threat?
a. The growing
successes of our chief competitor
b. The mediocre
leadership capabilities of our CEO
c. Our poor
management of cash flow
d. Our delays in
launching new products
